Georgia is an easy place to buy property as a foreigner — and, for most residential owners, an easy place to sell too. But the tax on a sale depends on three things: what kind of property it is, how long you owned it, and whether you actually made a profit. Get those right and many residential sales are tax-free; get them wrong and you can be taxed at 20%. Here is how it works.

The three rates

For an individual seller, the rate turns on the property type and the holding period:

• 0% — residential held over two years. Sell an apartment or house you have owned for more than two years and the gain is generally exempt. This is the situation most private owners are in.
• 5% — residential sold within two years. Sell a home inside the two-year window and the profit is taxed at 5%.
• 20% — commercial and non-residential. Commercial premises, land, and other non-residential assets — or a home used for business — fall outside the residential relief and are taxed at 20% on the gain.

The two-year rule — how the clock is counted

The two years run from the date of the document that establishes your ownership — not from when you paid or moved in. A few practical points:

• Self-built homes: the clock starts from the registration date.
• Inherited property: the previous owner’s holding period may count towards your two years (for first-line heirs), which can push you straight into the 0% band.
• Divided or merged units: the original acquisition date generally applies.

If you are near the two-year mark, the timing of the sale can be the difference between 5% and 0% — worth planning. For the taxes you pay while you own and rent out, see our guide to property and rental taxes in Georgia.

Residential or commercial? It matters

The relief only applies to genuinely residential property. A unit counts as residential if it is independently registered, designed for living, and can be connected to basic utilities — and is not part of a wider business operation. Renting your flat out to a tenant does not disqualify it. But some cases fall outside the residential rate: guesthouses do not qualify, assigning the rights under a preliminary purchase contract is taxed at 20%, and if you buy and sell property systematically, the tax office can treat it as a business — with no exemption at all.

Tax on profit, not on the price

Where tax does apply, it is charged on the gain — the sale price minus your acquisition cost — not on the full amount you receive. If you sell for what you paid, or less, there is no profit and no tax. Keep the documents that prove what you paid: they are what reduce the taxable gain. This is also why a clean paper trail from the original purchase matters years later at the sale.

Frequently Asked Questions: Selling Property in Georgia

Do I pay tax when I sell my apartment in Georgia?

If it is residential and you have owned it for more than two years, the gain is generally exempt (0%). Sold within two years, the profit is taxed at 5%. Commercial and non-residential property is taxed at 20% on the gain.

Is the tax on the sale price or the profit?

On the profit — the sale price minus what you originally paid. If there is no gain, there is no tax, which is why keeping proof of your purchase price matters.

When does the two-year period start?

From the date of the document that establishes ownership (registration date for a self-built home). For inherited property, the previous owner’s holding time may count for first-line heirs.

Does renting the property out change anything?

Renting to a tenant does not remove residential status for the sale relief. But running it as a guesthouse, or trading property systematically, can push the sale to the 20% business treatment.

Buying, Holding or Selling in Georgia? Let’s Make It Clean

From the right purchase paperwork to a tax-efficient sale, we help foreign owners handle Georgian property the correct way.